Start a business in the UAE as a non-resident (2024)

To start a business in the UAE as a non-resident, you need to be aware of the rules regarding business names and the regulations for licence applications. However, the process is very simple, and you may well be surprised at the lack of restrictions on your business activities as a non-national. This article gives the latest advice for any non-resident looking to set up their business in the UAE, covering these areas:

• Can a non-resident start a business in the UAE?
• Do I need a local partner to start a business in the UAE?
• Types of business licences in the UAE
• Steps to launch a business in the UAE as a non-resident
• Cost to start a business in the UAE as a non-resident
• Documents needed to open a company in the UAE as a non-resident
• Why choose UAQFTZ?

Can a non-resident start a business in the UAE?

In brief, the answer is yes. Most non-residents can launch a UAE business, and you can run your business from anywhere in the world. However, there are three possible limitations on these activities – your nationality, your tax residence status and the nature of your business venture.Your country of tax residency will impact your status as a business owner in the UAE. The country’s 0% tax rate is available to non-residents’ corporate income, but whether or not you can benefit from 0% on your personal income will depend on your tax status.These are all areas that UAE Free Trade Zone can advise you on.

Do I need a local partner to start a business in the UAE?

As long as your nationality and tax status do not preclude you from starting a business in the UAE, you won't need a local partner to start a business here, especially when you take a free zone licence from UAQFTZ.

Types of business licences in the UAE

There are two basic types of business licence you can apply for as a non-national in the UAE: mainland and free zone. The broad nature of these licences is self-explanatory – the mainland option enables you to open a business in the UAE mainland, and the free zone licence gives you a choice of the region’s many thriving free trade zones.The latter option is often the most cost-effective way for non-residents to launch a business in the UAE. Umm Al Quwain Free Trade Zone, for example, offers low-cost setup matched with low-cost living, fantastic infrastructure, 0% tax and many other benefits. Whatever your business plans and ambitions, and whichever country you are from, your plans will be accommodated and boosted in a free trade zone.There are various licence types available, including Commercial, Consultancy, Industrial, and Freelancer. The list of business activities allowed in UAQ Free Trade Zone exceeds 1,500, and several activities can be grouped in one licence. UAQFTZ can advise you on the most suitable way forward for your licence application.

Steps to launch a business in the UAE as a non-resident

The licence application process involves the following five simple steps.Step 1: Choose three proposed business names for approval, listed in order of preference. This is in case your first choice has already been used by another company or is unsuitable for other reasons.Step 2: Decide on your intended activity and licence type, and submit all the documents required for the application.Step 3: Sign the incorporation documents and submit the originals to the FTZA.Step 4: Send the required payment.Step 5: Wait for the trade licence to be issued – the process can take as little as one day.

Cost to start a business in the UAE as a non-resident

The cost of starting a business in the UAE will probably take you by surprise – but in a good way. UAQFTZ offers packages at such low rates that you will be able to use more of your initial capital to invest in other aspects of your business, such as marketing and staffing.Licence packages start at AED 8,000 for a no-visa-required package, with the possibility of taking out an AED 786 monthly instalment plan. Contact UAQFTZ for a personalised quote based on your specific requirements. The process is swift, and your company could be incorporated within 24 hours.

Documents needed to open a company in the UAE as a non-resident

To apply for your business licence, you will need to submit the following;

• Three proposed names for the entity you wish to be incorporated, listed in order of preference.
• A scanned colour copy of the completed application form.
• A colour copy of your passport, along with two passport-sized photographs. Any named business partner will need to submit the same. The copies should be sufficiently clear for all the passport details to be read.
• Proof of your residence (e.g. a recent utility bill that includes your name and address), or your last UAE entry stamp or UAE visa.

Why choose UAQFTZ?

UAQFTZ may be a relatively small free trade zone, but it combines many of the considerable benefits of running a business in the UAE. The many upsides of establishing your company here include the following:

• There is no requirement for capital proof, bank letter or audit report when you apply for your licence.
• Shareholders do not have to be physically present during business setup or at any point of the licence application process.
• You can collect your establishment card free of charge.
• It’s possible to use and extend your existing visa, with no requirement for a specific UAQ visa.
• All visa holders, investors and employees alike can sponsor their families.
• There is no requirement for an NOC when setting up a company in the UAQ Free Trade Zone.
• There are no restrictions on foreign employees, so you can hire whoever you like.

UAQ Free Trade Zone is also in a great location, with a seaport, Dubai International and Sharjah International Airports all within easy reach. And, as a business licence holder, you will reap the benefits of zero tax, 100% company ownership, no foreign exchange controls and no currency restrictions – to name just a few of the great things about doing business in this part of the world.